Aspen, CO Bankruptcy Law Firms & Lawyers

It is necessary to look to the language of the contract. If the contract is between Lily and the Japanese company, Lily is presumably liable for the debt. If the contract is between the American company and the Japanese company, the American company is liable for the debt, unless Lily personally guaranteed the debt. The devil is always in the details. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Additional information could change the context of the question and materially change the answer.

Being able to prevent foreclosure through chapter 13 bankruptcy is predicated on the idea that the debtor can afford the regular mortgage payments (including property taxes, HOA fees if there are any) and bring the past due mortgage current in their Chapter 13 plan. You can of course apply for a loan modification, but whether this will be successful is hard to say. You still have to show that you can afford a modified payment and the modified payments can only extend the mortgage note so far and lower the interest rate only so low. Increasing the income is the obvious solution. Can you rent a room in the home to generate some more cash flow? You'll have to act fast to generate some more income and salvage your chapter 13 case if it's falling apart because it appears unfeasible.